Update:
Momentum has issued a more mixed reaction, welcoming compassionate social measures such as the seven-day bereavement fund for parents, increased grants for births and adoptions, and higher stipends for Gozitan students. However, the group criticised the €4.66 COLA as insufficient amid rising living costs and lamented the continued inequity faced by thousands of pre-1962 pensioners.
Momentum also praised 24-hour health centres and new AI training initiatives but expressed disappointment over the government’s silence on work-from-home policies and the lack of concrete transport reform.
They warned that true progress cannot come at the cost of environmental destruction, citing recent public outcry over controversial planning reforms.
Diverging views: ADPD criticises 2026 Budget as “missed opportunity” while Employers applaud fiscal discipline and productivity focus
Initial reactions to Malta’s 2026 Budget have drawn a sharp contrast between political and business perspectives.
ADPD – The Green Party described the Budget as a “missed opportunity” to invest in a sustainable future, warning that the Government continues to fund economic growth through unsustainable borrowing while neglecting social justice and ecological wellbeing. ADPD, urged a shift toward a wellbeing economy and called for the minimum wage to be raised to a living wage.
The Nationalist Party also criticised the mounting public debt which said will triple by 2028 since Robert Abela first entered Office. PN’s criticism also resonated with ADPD’s as it called it the lack of a mass transportation system and a lack of measures addressing the quality of life.
In contrast, the Malta Employers’ Association (MEA) commended the Budget for judiciously balancing social imperatives with productivity measures, aligning with Malta’s Vision 2050 and the Draghi report’s call for resilience and innovation. The MEA welcomed the Accelerated Write-off Scheme on AI and digital investment and also the Expanded Malta Enterprise Microinvest Scheme and the Profits Reinvestment Measure, which will provide supports for entrepreneurs to decrease their tax burden. The MEA praised fiscal consolidation, tax compliance, and incentives for digitalisation, however noted that the Budget fell short on education reform and environmental commitment. The government has also announced a fund of up to €100 million to invest in AI adoption which includes various measures. Citizens who take an AI-course will also be given a free AI-subscription to any AI model of their choice.
The Malta Chamber of Commerce had similar praise and criticism. The Chamber of Commerce applauded the government’s measures to help businesses and entrepreneurs, but warned that major issues such as traffic congestion have been left unaddressed. The Chamber of Commerce also noted that government ignored public procurement reform and said that taxing the COLA increase defeats the purpose of the increase. The Chamber however noted that from a macroeconomic standpoint, the budget deserves recognition.
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